CBN TO SANCTION BANKS THAT FAIL TO ADOPT THE NEW FOREX POLICY

[Abuja]–The Central Bank of Nigeria has warned that there will be sanction for any commercial bank that refuses to adhere to the new Foreign Exchange policy.

CBN Director, Financial Market Department, Alvan Ikoku, via circulation to all banks, said that the sanction will affect executive and officers of the bank.

The CBN has, earlier on Monday, established a new policy aimed at easing citizens’ access to foreign exchange for business, educational, medical and other purposes.

The new policy included that all banks must have a forex retail outlet at major airports.

The apex bank also announced a $ 500 million special Wholesale Intervention Forward for banks to boost dollar liquidation in the inter-bank market, as well as guidelines for accessing the funds.

The CBN explained that the special intervention will be operated based on a “wholesome bid”, whereby commercial lenders can only apply for a particular dollar amount as opposed to requesting for individual customer demand.

The apex bank however did not specify what punishment offending banks and their officers will suffer.